In a recent move to tighten control over membership access, Costco has started testing a new system that mandates members to scan their membership cards when entering the warehouse.
This change, observed in a Washington State store with shoppers sharing photos on Reddit, marks a shift from the traditional practice of simply showing the card to Costco employees at the entrance.
The initiative, currently in a trial phase at select stores, aims to streamline entry and checkout processes. These scanners eliminate the need for employees to request membership cards at cash registers and self-checkout stations.
The move comes as a response to an increasing trend of non-members using borrowed membership cards, particularly noted after Costco expanded its self-checkout options.
Richard Galanti, Costco’s Chief Financial Officer, noted a surge in membership sharing since the pandemic began in 2020. Costco allows the issuance of a secondary household card to one other person in the same home. Additionally, the policy permits cardholders to bring up to two guests per visit.
Galanti emphasized the efficiency benefits of this new system, stating, “It speeds up the process at entry and at the checkout. That’s what we’re going to pilot it for.”
As of 2022, Costco reported approximately 66 million paid members and 119 million cardholders. The membership fees, priced at $60 annually for a regular membership or $120 for an executive card with extra benefits, are a significant revenue source for the retailer.
In 2022, Costco generated $4.2 billion in membership fees, a 9% increase from the previous year, maintaining a high renewal rate of 93%.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
